Why Conserving Cultural Heritage Is Important For Real Estate

What makes India popular worldwide? What attracts tourists to our country? While the growing economy is second, the first always remains our cultural heritage. And, not just the tourists, the cultural heritage of a city also attracts real estate buyers. An article published on our portal earlier talked about how the cultural heritage of Delhi is driving the real estate market in the National Capital Region.

This is true of all the cities worldwide. The cultural heritage of the city impacts its real estate market and the economy at large.

In a study, Impacts of Cultural Heritage on Real Estate Market, conducted in Hungary by the European Heritage Heads Forum, found that compared to the non-listed properties on the market, national monument protection causes a 1.9 per cent price premium, local protection triggers a fall of four per cent discount while historic environment generates 8.2 per cent price effect in Hungary.

Understanding the need for conservation and development of cultural heritage and market them among people has become a point of attention for the government, too.

In his Budget Speech, Finance Minister Arun Jaitley announced plans to preserve what India is known for worldwide, its cultural heritage. To preserve this heritage, the finance minister said, “To preserve and revitalise soul of the heritage cities in India, National Heritage City Development and Augmentation Yojana (HRIDAY) has been taken up in a major way”.

He further said, “India is blessed with an abundance of tourist attractions. It is proposed to develop ten prominent tourist sites into Iconic Tourism destinations by following a holistic approach involving infrastructure and skill development, development of technology, attracting private investment, branding and marketing.  In addition, tourist amenities at 100 Adarsh monuments of the Archaeological Survey of India will be upgraded to enhance visitor experience”.

The goal

HRIDAY: The scheme launched by the Prime Minister Narendra Modi-led government in January 2015, aims to bring together urban planning, economic growth and heritage conservation in an inclusive manner to preserve the heritage character of each Heritage City. The scheme designed to support core heritage infrastructure projects, including revitalisation of linked urban infrastructure for heritage assets such as monuments, ghats, temples, etc., along with reviving certain intangible assets. Under this, the sanitation facilities, roads, public transportation, parking, citizen services and information kiosks will be set up at 12 identified cities. These cities include Ajmer, Amaravati, Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.

Adarsh monuments: A scheme launched in 2015, aims to develop tourist amenities at some of the key identified monuments. In this Budget, the finance minister proposed the development of 10 such sites. This includes monuments in Karnataka's Hampi and Pattadakal group of monuments, Delhi's Humayun's Tomb, Maharashtra's Elephanta Caves and Odisha's Konark Temple. These monuments will undergo branding and marketing.

The impact on cities

These two schemes can be vital for developing and revival of real estate in cities rich in cultural heritage. For instance, Varanasi, known for its ghats of the River Ganga, is already witnessing an upsurge in property prices so much so that it has surpassed the prices in the state capital of Lucknow.

A well-developed and maintained heritage site ensures more and more tourists pouring in the city, the need to accommodate and so on. This put together creates a demand for vacation homes, bread and breakfast setups. Hence, the demand for more real estate.